The price of land always changes, which we surveyed the factor of change in this paper. The price of realestate is changed by market price mechanism domineering economic phenomina, but Is discriminated in the same geographical place for its own proper...
The price of land always changes, which we surveyed the factor of change in this paper. The price of realestate is changed by market price mechanism domineering economic phenomina, but Is discriminated in the same geographical place for its own property. The value of real-estates are created by interaction of the utility of itself, effective respective, and environmental factors.
In order to surveythe the changeof valueof realestate, we first defined economic vriables like pricelevel, GNP, trade, and analyzed the Interaction of economic variables which make effects on the value.
Moerover we trade to analyze the time lag of interation, which would make helpul policy alternatives to avoid severe fluctuation of the price and speculative investment.
On the other hand, we made an empirical study in use of simple regression method whose regression equation is helpful to predict the fluctuation of dependent variables which means the degree of Influence which independent variables make on dependent variables. GeneralIy, thls economic phnomena and least square methode (L.S.E) is known to the most proper estimation which is best linear unbiased estimater (BLUE)
The output fo analyais on correlation through regrresion method is as follows.
First of all, on the Premise that the price of land make an influence on the price level more strongly than reversee, the rise of price of land doge not directly make a pressure on price level which 1% significance level. But considering time log, the rise of land price makes an effect on cinsummer price index (C.P.I), which twoyear time log of which co-efficient of determination is 76% with tree-year time log of which co-efficient of determination is increased to 83%, and an wholsaler price index (W.P.I) with two or three time log of which co-efficient of determination is 77%.
In the other words, the rise of price of find result in rising pressure of general price level, and its path is the riseof land by one percent rice wholesaler price index by 0.67% in two years, and consumer price index by 0.56% In three years respectively, which at least is reliable to 95% relevence interval.
Second of all, we derived through significance level test that the rise of the price of land influence gross national product ( GNP )more strongly than reverse and its degree of effect is about twenty-three percent whichis explained with 72% co-efficient of determiation. The rise of asset price not only increaseconsumption through wealth effect but also fattens national economy through the rise of investment which i8 subject to expectational return on investment to real assets. Un other words it is positive effect that the rise of the price of land increase the amount of GNP.
In detail, the rise of the price of land Is cause by increase of effective demand on land through abundant liquidity, but its rise make an possitive effect on income and savings.
Third of all , the relation between the price of land and trade is as follows.
It is very important to grasp the factor of fluctuation of trade, because It Is closely related to various economic problems in its own country.
Generally, the rise of the price of land increase asset price and consumptlon, but In this survey, the above premise is hardely explain and has no significance, considering the log.
Through the price of land has no relevance with trade, to see trade divided Into exports and imports have no relation with the price of land but, exports have close relation with it, according to the price of land with 59% co-efficient of determination, and the rise of one percent of the amounts of exports causes the proved by significance test with 97.51 relevance.
To explain this in detail, the rise of the amounts of exports increase foreign currency inflows and liquidity and this has pressure on the price level and in the end, this flows into alternative investment assets like land or stock, because under the abundant llquidity real assets are prefererd to financial aasets.
So the rise fo the price of land Is derived.
Finally, we know that to control the price of land is always not helpful to natiional economy. Therefore, the policy to control the price of land must be prudenthy formed, considering that the price of land have clse relation with al1 the macro-economic variables.